Tracking Forex Trends

Now I'm going to introduce to you trading theories. In forex trading the trends is your best friend. If you can figure out the trend in forex online trading you can go along way in this trading game. The foreign exchange or better known as Forex Market is know as one of the most consisting trending markets of all the markets out there.

Basically if your trading USD/EUR what you want to look for is how well the US economy is doing. Say the headlines in the New York Times reads unemployment is at a all time high and Gas prices are surging upwards. What you want to do is start selling off your U.S. dollars and start buying euros, though this is just example. If you spot trends in the forex markets it can lead to wonderful opportunities.

Its just like in the real world theirs fashions trends which if you start selling a popular shoe as it starts soar then you can ride that to the fullest. There are trend following opportunities for every trading time horizon. Look at a weekly or daily chart of any major cross rate, and you will see trends that last several days, weeks or even months.

Here is a few trends to look for:

• Price trends- are market conditions in which movement is consistently rising or falling. The market condition opposite to trends is a sideways market in which highs and lows are pretty much the same.
• Trend-line- is a straight line joining a series of price tops or bottoms that represents an area of support or resistance. Generally speaking, a reversal in a trend or slowing down of a pace of a trend is indicated when the trend-line is viewed as major occurrence.